AAM raises 2025 financial outlook on strong Q2 results

Published 08/08/2025, 16:38
AAM raises 2025 financial outlook on strong Q2 results

DETROIT - American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) has raised its financial targets for fiscal year 2025 following strong second quarter results, the automotive supplier announced Friday.

The company now expects annual sales between $5.75 billion and $5.95 billion, up from its previous low-end estimate of $5.65 billion. AAM also increased its adjusted EBITDA forecast to between $695 million and $745 million, raising the lower end from $665 million previously.

The company similarly lifted its adjusted free cash flow projection to $175-$215 million from $165-$215 million, while maintaining capital spending at approximately 5% of sales.

The revised outlook is based on North American light vehicle production estimates of 14.6-15.1 million units and AAM’s production forecasts for key programs it supports. The company noted these projections exclude costs associated with its announced combination with Dowlais and reflect AAM on a standalone basis.

For the full year, AAM expects net income between $5-$15 million, interest expense of $170-$180 million, and income tax expense of $10-$40 million. Depreciation and amortization is projected at $460 million.

The company anticipates approximately $35 million in restructuring-related costs and $65 million in acquisition-related expenses tied to the Dowlais transaction.

AAM’s updated guidance assumes no changes to USMCA trade agreements and successful mitigation of most incremental tariff costs. The forecast also presumes no material changes to macroeconomic conditions, accounting standards, market demand, or the competitive environment.

The financial projections were disclosed during the company’s earnings presentation based on a press release statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.